Jg Chemicals Limited · NSE:JGCHEM
Jg Chemicals — Investor Presentation (July 2024)
28 slides from Jg Chemicals's investor presentation, July 2024
Slide 1: Investor Presentation
Investor Presentation JULY 2024
Slide 2: Company Overview
Company Overview • JG Chemicals Limited (JGCL), incorporated in 1975, is the largest manufacturer of Zinc Oxide in India. Revenue (INR Mn) and EBITDA Margins (%) • The company started off with a small plant in Kolkata in 1975 with a capacity of about 600 MTPA, and has today 7,846 scaled up to become
Slide 3: Board of Directors
Board of Directors Suresh Jhunjhunwala Anirudh Jhunjhunwala Anuj Jhunjhunwala Ashok Bhandari Sukanta Nag Savita Agarwal Executive Chairman and Managing Director and Whole-time Director Independent Director Independent Director Independent Director Whole-time Director CEO and CFO He is responsible fo
Slide 4: Key Milestones
Key Milestones Phase 2 Phase 4 Commencement of expansion of Zinc expansion of Zinc Oxide division at IPO: Listing of the operations at Oxide division at 2nd Facility in Naidupeta Company on the Naidupeta BSE and NSE Kolkata Facility Facility 2001 2016 2019 2022 2004 2018 2021 2024 Conversion of Comm
Slide 5: Geographical Presence
Geographical Presence Europe Other SAARC Countries Plant 1, West Thailand Bengal India Plant 2, West Bengal Constitutes Naidupeta, Andhra 99.25% Pradesh of total exports Australia from India • Direct customer relations – Over 95% of sales are directly to end customers, helps build • Tyre industry, w
Slide 6: Marquee Clients
Marquee Clients 6 Investor Presentation
Slide 7: Manufacturing plants
Manufacturing plants West Bengal Naidupeta, Andhra Pradesh Plant 1: Jangalpur The only IATF approved ZnO facility globally and also has WHO Capacity: GMP certification (amongst the very few plants globally to have 14,400 MTPA for Zinc Oxide this). 5,040 MTPA for Zinc Ingots Capacity: 43,704 MTPA for
Slide 8: Business Overview
Business Overview 8 Investor Presentation
Slide 9: Zinc Oxide: A Quick Introduction
Zinc Oxide: A Quick Introduction Zinc Oxide (ZnO) is: Production Process ZnO properties: Raw materials required for ZnO production • Inorganic compound; white in • Indirect (French), Direct and Wet • High chemical stability Zinc Metal colour and insoluble in water Chemical Process • High electrochem
Slide 10: Zinc Scrap comes in different size, shapes and quality
Zinc Scrap comes in different size, shapes and quality Zinc Dross/Scrap is a highly complex metal to process and handle while ensuring highest efficiencies 10 Investor Presentation
Slide 11: Manufacturing process of Zinc Oxide
Manufacturing process of Zinc Oxide JGCL uses the French Process technology to produce Zinc Oxide across all its plants French process is the dominant technology and all Grades of Zinc Oxide the major producers in America, Europe and Asia have adopted this process. • Commercial grades of Zinc Oxide
Slide 12: Environmentally Friendly Manufacturing Process
Environmentally Friendly Manufacturing Process Environmentally Friendly Manufacturing Process Use of recycled/ secondary zinc instead of primary Zinc Using recycled metal instead of finite virgin ores JGCL is the largest zinc recycling company in India. Our business exemplifies circular economy succ
Slide 13: Leading Market Position With Diversified Customer Base
Leading Market Position With Diversified Customer Base ZnO is a highly versatile chemical, it is used is for various industries with 80+ grades sold for a wide spectrum of industrial applications requiring high customization to manufacture from zinc scrap making it a complex manufacturing process ha
Slide 14: Zinc Sulphate: Diversifying Product Pool
Zinc Sulphate: Diversifying Product Pool by Leveraging Inherent Strengths in Sourcing and Sales • Zinc Sulphate is an inorganic compound which is used in the agriculture industry as an essential Application areas micronutrient; in addition to that it also has use in the pharmaceutical segment. • Zin
Slide 15: Robust Global Supply Chain
Robust Global Supply Chain Sourcing of Raw Material is a High Entry Barrier Raw materials Maintaining inventory across Most of the Zinc Zinc Dross / Scrap Zinc Ash facilities enables Oxide produced is us to blend different from Zinc Dross Used for production Used for production of compositions of (s
Slide 16: Strategic Overview
Strategic Overview 16 Investor Presentation
Slide 17: Key Strengths
Key Strengths JGCL has a very Only IATF certified facility strong brand recall, (Naidupeta) in India & image and goodwill 9 out of Top 10 global Sell over 80 grades obtained licenses to mfg. amongst the and Top 11 domestic of ZnO as per ZnO in with IPBP/USP/ customers which it has Tyre manufacturers
Slide 18: High Entry Barriers in the Industry
High Entry Barriers in the Industry Long drawn process for Customer Approvals Sourcing of Raw Materials Stringent Regulatory Approvals On an average it takes about 4 to 5 years minimum The procurement of zinc scrap is particularly Various licenses like IATF, WHO GMP and others to get approval with l
Slide 19: Future Growth Strategies
Future Growth Strategies Expand Product Portfolio Deeper Penetration in Domestic Markets Ramp-up of Zinc Sulphate Business Expansion to New Geographies Diversify Customer Applications in End-user Industries 19 Investor Presentation
Slide 20: Industry Overview
Industry Overview 20 Investor Presentation
Slide 21: Zinc Oxide Industry Structure
Zinc Oxide Industry Structure Key Highlights No Impact of China in the Global Market • Global Zinc Oxide market size is about 1.40 – 1.60 million MT per annum • Zero imports from China • India’s Zinc Oxide market size is about 130 thousand MT per annum • China’s Zinc Oxide market is self sufficient
Slide 22: Financial Overview
Financial Overview 22 Investor Presentation
Slide 23: Historical Income Statement
Historical Income Statement Particulars (INR Mn) FY21 FY22 FY23 FY24 Revenue from Operations 4,353 6,129 7,846 6,677 Other Income 51 102 96 77 Total Income 4,404 6,231 7,942 6,754 Total Expenses 3,922 5,575 7,091 6,224 EBITDA 482 656 851 530 EBITDA Margins (%) 11.07% 10.70% 10.85% 7.94% Depreciation
Slide 24: Historical Balance Sheet
Historical Balance Sheet Particulars (INR Mn) FY23 FY24 Particulars (INR Mn) FY23 FY24 EQUITY 2,135 4,055 NON-CURRENT ASSETS 415 551 Share Capital 317 392 (a) Property, plant & equipment 353 417 Other Equity 1,759 3,592 (b) Capital Work-in-progress 9 - Non Controlling Interest 59 71 (c) Intangible A
Slide 25: Financial Highlights
Financial Highlights OPERATIONAL REVENUE (INR MN) EBITDA (INR MN) & EBITDA MARGIN PAT (INR MN) & PAT MARGIN (%) (%) 7,846 6.9% 7.2% 6,677 11.1% 10.9% 6.5% 6,129 10.7% 4.8% 4,353 7.9% 568 851 423 656 321 482 530 284 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 FY 21 FY 22 FY 23 FY 24 NET DEBT TO E
Slide 26: Capital Market Information
Capital Market Information Shareholding Pattern (As On 30th June, 2024) Market Data (INR) (As on 30th June, 2024) DII, 1.29% FII, 6.33% AIF, 2.35% Face Value 10.00 Public, 19.04% CMP 236.90 52 Week H/L 274.40/171.00 Promoters, 70.99% Market Cap (INR Mn) 9,283.18 Shares O/S (Mn) 39.19 Marquee Shareho
Slide 27: Disclaimer
Disclaimer JG Chemicals Limited No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events no
Slide 28: Thank You
Thank You 28 Investor Presentation